The market put in a solid session today. All the major averages opened higher and held the gains the rest of the session. Late buying came in and all the major averages finished near their intraday trading highs. The Nasd averages were the strongest with the COMPQ and the NDX gaining 1.79% and 1.87% respectively. The SPX was higher by 1.42%. Volume was higher across the board, making this a follow through on all the major averages. Leading stocks rallied as well with the leaders index gaining 2.41% on the day. The index closed high in its trading range on higher but below average volume. The market acted strongly today. The major averages opened higher and pretty much held the gains until some late buying drove the market to the highs of the day. There was a follow through and growth stocks were leading the way. This is encouraging. The confirmation for follow through was mixed. The %E’s were in the right range so they confirmed. The Eureka may have signaled but I don’t have all the data yet. The weekly Coppock will not signal as it is not in position. My short term indicators turned up a few days ago but I was skeptical. The SPX regained its 50dma. Frankly, I would be a little careful here. Follow throughs without a weekly Coppock confirmations have a very high failure rate. They can work but the odds are against them so it is likely a time to try for singles and doubles, not home runs. I have started playing around with a new leaders index, but I am not having an easy time. Hopefully by tomorrow I will have one finished. It is ok to take positions after this follow through, but don’t get to heavily invested too quickly. Jerry
Reply With Quote